Mortgage rates climb further, near 23-year high
AmeriVet Securities head of U.S. rates Gregory Faranello on the Fed pausing rate hikes, his outlook for the market and the UAW strike.
The average rate on the benchmark 30-year fixed mortgage surged again this week, hitting the highest level in nearly 23 years.
Freddie Mac's latest Primary Mortgage Market Survey released Thursday shows that the average rate for a 30-year fixed note climbed to 7.31%, up from 7.19% last week, and from 6.7% a year ago.
The rate on a 15-year mortgage also rose, averaging 6.72% after coming in last week at 6.54%. One year ago, the rate on a 15-year fixed note averaged 5.96%.
A sign outside a home for sale in Atlanta, Georgia on Wednesday, Septeber. 6, 2023. (Photographer: Elijah Nouvelage/Bloomberg via Getty Images / Getty Images)
«The 30-year fixed-rate mortgage has hit the highest level since the year 2000,» said Sam Khater, Freddie Mac’s chief economist. «However, unlike the turn of the millennium, house prices today are rising alongside mortgage rates, primarily due to low inventory. These headwinds are causing both buyers and sellers to hold out for better circumstances.»
SEE HOW MUCH HIGHER MORTGAGE RATES ARE ACTUALLY COSTING YOU
Indeed, the latest data from the National Association of Realtors found that pending home sales tumbled 7.1% in the U.S. last month, indicating that high housing costs are causing more consumers to balk at making a deal.
Would-be buyers are increasingly being priced out of the market or getting sticker shock, with the median monthly mortgage payment recently hitting an all-time high of $2,632.
Homes in Rocklin, California, on Tuesday, December 6, 2022. (Photographer: David Paul Morris/Bloomberg via Getty Images / Getty Images)
Meanwhile, would-be
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